Core Viewpoint - The debate over whether public companies should report quarterly results has resurfaced, with President Trump's proposal to shift to semi-annual reporting to allow managers to focus more on long-term business operations [1][5]. Group 1: Arguments for Semi-Annual Reporting - The SEC has indicated it will prioritize the proposal for semi-annual reporting, which was initially suggested by Trump during his first term in 2018 [1]. - Warren Buffett and JP Morgan CEO Jaime Dimon previously argued that short-termism harms the economy and that companies should focus on long-term performance rather than meeting quarterly earnings forecasts [2][3]. - Robert Grifeld, former NASDAQ chairman, supports the discussion around semi-annual reporting, suggesting it could reduce the burden on companies while still providing investors with valuable information [5][10]. Group 2: Current Reporting Practices - Investors typically desire more frequent information, while companies often prefer less frequent reporting due to the time and effort involved in quarterly earnings releases [6][7]. - Most countries, except for Germany and Austria, have adopted semi-annual reporting to mitigate the focus on short-term results [7]. - Grifeld proposes that companies should provide internal key performance indicators (KPIs) in off quarters to maintain transparency without the full burden of quarterly reporting [8][9]. Group 3: Private Market Considerations - There is a growing concern regarding the lack of disclosure in private markets, where retail investors often have no access to information compared to public companies [12][14]. - Grifeld advocates for private companies with over 100 shareholders to provide management reports every six months, including KPIs, to improve transparency for retail investors [14][16]. - The asymmetry of information in private markets is highlighted as a significant issue that needs addressing, especially as more retail investors seek to invest in these companies [15][17].

Regulatory Landscape & Potential Changes - SEC is considering allowing public companies to report results every six months instead of every three months [1] - The proposal aims to eliminate unnecessary regulatory burden on companies [1] Arguments for Semi-Annual Reporting - Semi-annual reporting could save firms money [1] - Managers could focus on properly running their companies with less frequent reporting [1] - It may help America better compete with China's longer-term view of business development [1] - Moving away from short-term guidance would be beneficial for companies [1] Concerns & Counterarguments - Less frequent reporting could raise questions about the opacity and democratization of information [5] - Investor conferences and meetings with IR would become more important with semi-annual reporting [5] - Some argue for more information from companies, not less [3] Short-Termism vs Long-Term Focus - Short-termism is harming the economy [1] - Companies should stop issuing earnings per share guidance on a quarterly basis [1] - Amazon is an example of a company with a long-term focus, prioritizing growth over immediate profits [1][2] Impact on Earnings Analysis - Forecasting earnings per share can be challenging due to various charges and pipeline deals [2] - Revenue misses can lead to stock sell-offs, even if deals are pushed back slightly [2] - Reporting on a six-month basis would reduce the frequency of these events from four times a year to two [2] Frequency of Earnings Reports - The discussion references covering at least 500 companies for 120 earning seasons (30 years * 4 quarters) [4]